To sustain a long position what lot size do you need?

[jcojci]

Maybe that is ideal or not, depend on each person. You can say 0.01 is ideal but other people will not enough and we have different initial to start trading.

But I am not yet try trading FX and only knows crypto exchanges and I don't use 10% from my total balance to trade. You will choose any percentage or lot size which you feels comfort and don't use other people set up because the risk will be different. The matter is you trade with only the money you can afford, that is the basic.

[EarnOnVictor]

Is 0.01 ideal enough?

You can't rely on your trading risk without considering the size of the account you are taking the risk on, which is the capital. In any standard trading settings, 0.01 lot size is the least risk you can take, yet, trading it on assets like Gold would eat your $300 with that lot size in just a day, in some cases. But many assets like Bitcoin and other FX currencies would accommodate it longer.

Therefore, calculate your risk based on: 1. Your capital, 2. Management you can afford (to set the lot size), and 3. The asset in question (volatility).

[Perfectbaby]

Is 0.01 ideal enough?

You can't rely on your trading risk without considering the size of the account you are taking the risk on, which is the capital. In any standard trading settings, 0.01 lot size is the least risk you can take, yet, trading it on assets like Gold would eat your $300 with that lot size in just a day, in some cases. But many assets like Bitcoin and other FX currencies would accommodate it longer.

Therefore, calculate your risk based on: 1. Your capital, 2. Management you can afford (to set the lot size), and 3. The asset in question (volatility).

Whom ever that goes to trade cryptocurrencies should know that they are getting themselves engaged with a volatile assets.
Then should know that they must be prepared about the risk that is associated with digital currencies, and also accepts to use the money they can afford to lose while trading on any broker or exchanges.
You are right, and of course most have these three characteristics you made mentioned, before or can be able to follow up the market gradually and also know the lotsize to you.

[EarnOnVictor]

Is 0.01 ideal enough?

You can't rely on your trading risk without considering the size of the account you are taking the risk on, which is the capital. In any standard trading settings, 0.01 lot size is the least risk you can take, yet, trading it on assets like Gold would eat your $300 with that lot size in just a day, in some cases. But many assets like Bitcoin and other FX currencies would accommodate it longer.

Therefore, calculate your risk based on: 1. Your capital, 2. Management you can afford (to set the lot size), and 3. The asset in question (volatility).

Whom ever that goes to trade cryptocurrencies should know that they are getting themselves engaged with a volatile assets.

Let's get something straight. Since you mentioned "lot size," I believe you are talking about the traditional way of brokers, and not the exchanges new way. If at all you want to relate it to the exchanges way, that will be in the way of TradeFi, which is identical to the traditional broker way. If this is true, then crypto shouldn't be your headache, but Metals (Gold), Indices, Oil, etc.. They are more volatile.

[Perfectbaby]

Is 0.01 ideal enough?

You can't rely on your trading risk without considering the size of the account you are taking the risk on, which is the capital. In any standard trading settings, 0.01 lot size is the least risk you can take, yet, trading it on assets like Gold would eat your $300 with that lot size in just a day, in some cases. But many assets like Bitcoin and other FX currencies would accommodate it longer.

Therefore, calculate your risk based on: 1. Your capital, 2. Management you can afford (to set the lot size), and 3. The asset in question (volatility).

Whom ever that goes to trade cryptocurrencies should know that they are getting themselves engaged with a volatile assets.

Let's get something straight. Since you mentioned "lot size," I believe you are talking about the traditional way of brokers, and not the exchanges new way. If at all you want to relate it to the exchanges way, that will be in the way of TradeFi, which is identical to the traditional broker way. If this is true, then crypto shouldn't be your headache, but Metals (Gold), Indices, Oil, etc.. They are more volatile.

Yes exactly and i am beginning to sense that most of those who are trading on forex are now beginning to focused on crypto currency trading since they have already had the knowledge about what trading is all about.
With little efforts it becomes that easier for them to understand how the crypto market reacts over the time. In fact, crypto currency is more easier to understand how their movement is and because there are two season in the crypto currency when you understand the both correctly then it would help to scale through the crypto space.

[Zigabel]

I want to know now that the market is not stable and hasn't shown a clear direction or movement, we know that anything is likely and possibly to happen. As trader who is trading and you happens to fund your account with at 500$ while trading currently and as the market unstable what lot size do you think to be using to sustain a longer position while trading so that you wouldn't be that liquidated. Of course as we know, before opening a position you should know what lot size you should be using at the main time to keep your position for long time without getting drained. Is 0.01 ideal enough?

Your Risk Appetite will influence your lot size, so will your purpose, aim and target also be considered alongside the time frame you are setting for yourself to achieve any of such target you are looking to get. After considering all of the above we will then determine what kind of trader you are going to be, an aggressive or a conservative one, both has got different styles and approach to trading.

For someone who isn't in a rush and wants to gradually grow and build the account, then they may want to be very conservative and make use of such lot size as 0.01 and get the kind of profit they want after a very long time, but they will get the chance to stay long in the market because when the market reverses, it will not hit them so bad an effect because what they have at risk isn't that high. But as an aggressive trader who will want to stay long in the market applying their risk management, you can use lot sizes between 0.1 to 0.8 and you can be sure to still have some level of safety to keep you a bit longer but your discipline has to be in check with your emotions and your risk appetite.

[AmoreJaz]

Is 0.01 ideal enough?

You can't rely on your trading risk without considering the size of the account you are taking the risk on, which is the capital. In any standard trading settings, 0.01 lot size is the least risk you can take, yet, trading it on assets like Gold would eat your $300 with that lot size in just a day, in some cases. But many assets like Bitcoin and other FX currencies would accommodate it longer.

Therefore, calculate your risk based on: 1. Your capital, 2. Management you can afford (to set the lot size), and 3. The asset in question (volatility).

Taking risk on any investment requires due diligence because each one has their unique features and they need different approach so to speak. You can't say that the best tactic in one investment will be applicable as well on the other one. You still need to educate yourself about these investments and see what particular techniques are applicable to each of them.

[LogitechMouse]

Re: To sustain a long position what lot size do you need?

I don't think that lot size matters the most when it comes to sustainability in trading. For me, there are 2 things that are more important than lot size. Risk management, and leverage.

I tried to trade using PropFirms, and it didn't work for me simply because the risk management that I want isn't aligned to what the PropFirm is. Also, the leverage can't be changed as well. I saw some where they only required to do x50 leverage, and for me, that's too much even though I'm trading with a large money. Because of those 2 things, I quit trading in PropFirms, and focused more on trading on cryptocurrency exchanges since the leverage there is adjustable, and I can adjust my risk whenever I wanted to. I might try to do PropFirms though but not now, and I still need to become a better trader.

Risk management, and leverage. Those are 2 things that are way more important than lot size.

[WilliamCarter]

hunting for some "magic number" for lot size is the biggest trap for noobs, cuz the market dgaf about ur account balance. real survival isn't about the lot size itself, it's about calculating how much u can actually afford to lose and working backwards to ur entry size from there. if u can just dynamic-adjust based on ur equity and keep one bad trade from nuking the whole stash, that's the only risk management logic that actually works.

[CryptopreneurBrainboss]

Is 0.01 ideal enough?

A lot size of 0.01 equals to 1% and a 1% risk tolerance for a $500 account is $5 and if that's the amount you can risk on your $500 capital then that should be a comfortable lot amount for you to use. Using percentage I prefer to trade with a percentage of 5 to 10% of my capital so if my capital was to be $500 then the amount I'll be using for each trade will be starting from 25 to $50 and maybe if I'm very positive about that trade then I might increase it a little bit.

To become successful in trading you need to stay in the market for a long time to gain the experience that those that just started and quit will not get so for you to achieve that you also have to have enough capital to sustain you and if you only use 1% of your capital and let's say you lose all your trade it will take you about 100 trade before you can lose a $500 account which I believe you must have gained enough experience and possibly you can't lose all 100 trades simultaneously.

Being successful in trading isn't all about having a lesser lot size, as even though you don't want to lose much you still need to make a good amount of profit and a small lot size won't give you a decent profit. What you need is experience and a good strategy so you can make use of a decent percentage of your capital to stay profitable in the market.

[cxtreenal]

I want to know now that the market is not stable and hasn't shown a clear direction or movement, we know that anything is likely and possibly to happen. As trader who is trading and you happens to fund your account with at 500$ while trading currently and as the market unstable what lot size do you think to be using to sustain a longer position while trading so that you wouldn't be that liquidated. Of course as we know, before opening a position you should know what lot size you should be using at the main time to keep your position for long time without getting drained. Is 0.01 ideal enough?

In this volatile market, some skilled traders are making profits against their capital but they may have had to suffer a lot of losses and be mentally unstable to get to that point. In the current market conditions, I see no other option for new traders than to keep buying. The time of price decline is an ideal time for traders but it is necessary to apply an amount of funds that you can afford to lose. It would be a good strategy to buy slowly without using leverage during this time.

It would be wise to add $500 to the portfolio but choose the best for currency selection. I think you should save Bitcoin. Focus on long term investment as opposed to trading. The size may not be very important to hold a long position I am talking about following a gradual accumulation strategy.

The main thing about long positions from regular earnings/discretionary income will continue to expand in an automatic strategy if you can stay in the long term accumulation because the size will continue to grow based on consistency.

[Obari]

Of course as we know, before opening a position you should know what lot size you should be using at the main time to keep your position for long time without getting drained. Is 0.01 ideal enough?

For long maintenance, use just 1.5 to 2.5x for bitcoin.

Don't you think a 5x or even a 2.5x would be high for a small trader who intends to hold their trades for much more longer period?
It's been so long i attempted trading but i think using the least available lot size would be better in as much as th trader isn't trying to chase quick profits